When does refinancing a business loan make sense?
Refinancing can be worthwhile when you can get a lower rate, reduce monthly repayments, extend the term to free up cash flow, or switch from a restrictive product to a more flexible one (e.g. a business line of credit). It’s also useful if your business has grown and you now qualify for better business loan terms than when you first borrowed.
Step 1: Check your current loan terms
Review your existing contract for any break or exit fees, early repayment charges, and the remaining balance. Knowing these numbers helps you work out whether refinancing will actually save you money after fees.
Step 2: Compare lenders and offers
Shop around. Compare interest rates, fees, terms, and flexibility. Using a platform like Better Capital lets you submit one application and get matched with multiple Australian lenders, so you can compare fast business loans and other products side by side without multiple forms.
Step 3: Apply and get approved
Once you’ve chosen a new lender or product, complete their application. Have your ABN, bank statements, and current loan details ready. Many lenders can approve and fund quickly—sometimes the same day—which helps you time the switch with your existing loan.
Step 4: Settle the old loan and start the new one
The new lender may pay out your existing loan as part of the refinance, or you use the new funds to settle it. Ensure the old loan is closed properly and you have confirmation. Then make sure your new repayments are set up so you don’t miss a payment.
Tips for a smooth refinance
Plan ahead for any exit fees, keep your accounts in good order so you qualify for the best rates, and don’t cancel the old facility until the new one is in place. If you’re unsure, ask the new lender or a broker to walk you through the process—refinancing a business loan with a different lender is common and can be straightforward when you’re prepared.